You would do well to ask Ford questions on the Ford Board.
Click below for an older post from there that explains that steering block.
Rereading it here I see I made a mistake in that old post. Inside the center spool there is a groove on one end. In that old post I said the groove goes up. That is not correct, The groove goes down.
The upper port on the block should connect to the inside port on the cylinder - I think - I have replacement cylinders on mine but assume they are the same as the oem ones.